Does the "devil" now "wear Versace?" Prada just bought Italian fashion rival Versace and now everyone is wondering what is next.

The Prada Group announced a deal Thursday to buy crosstown Milan fashion rival Versace from the U.S. luxury group Capri Holdings under terms that values

The US$1.4bil deal will put Versace, known for sexy silhouettes and bold Greco and Medusa motifs, under the same roof as Prada's "ugly chic" aesthetic.

Prada is getting a discount but not a good deal. After weeks of talks with Michael Kors-owner Capri , the Hong Kong-listed Italian group agreed to pay 1.3 billion euros ($1.4 billion) for Versace. Given Capri paid $2 billion for the brand famous for its Medusa logo in 2018,

The purchase of Versace exposes the agency’s antitrust blunder.

Fashion executive John Idol thought Versace leaned too much on ornate designs and aimed to fix it by dialing things down, then boosting prices.

Versace is changing hands after Capri Holdings and Prada Group agreed a $1.375 deal, which will see the luxury label join after Capri's collapsed merger with Tapestry.

Prada's management sees untapped potential in Versace’s global brand recognition, aiming to evolve its bold aesthetic and leveraging the group’s platform.

Prada is reportedly set to acquire Versace from Capri Holdings for $1.38 billion, scoring a $200 million discount on the previous valuation of the deal due to global trade uncertainties. Capri, which is grappling with debts and weak market demand,